$4 billion crypto fund says Bitcoin (BTC) has bottomed as crypto enters new bull cycle

Flagship cryptocurrency Bitcoin ($BTC) is now entering its “seventh bull cycle,” according to head of $4.1 billion cryptocurrency hedge fund Pantera Capital, Dan Morehead, who predicts this year will be a year , in which confidence in the space is rebuilt.

According to Pantera Capital’s latest “Blockchain Letter” update, which comes after BTC reported its best month in a decade in January, the cryptocurrency bear market ended on Nov. 21 after 376 days, making it the second-largest bear market by the the room was faced .

For Dan Morehead, a former Goldman Sachs bond trader who founded the fund in 2013, the time has come for bulls in the cryptocurrency space. The letter states that Pantera has “traversed ten years of Bitcoin cycles” and that it has traded “35 years of similar cycles.” multihead wrote:

Regardless of what happens in interest rate-sensitive asset classes, I believe that blockchain assets have bottomed out and we are in the next bull market cycle.

The former bond trader noted that this bear market was the only one that “more than completely wiped out the previous bull market. In this case, we’re giving back 136% of the previous rally.” The bear market’s drawdown was 77%, above the median of 73%, he said.

According to Morehead, “the market is now starting to grind higher” as it rebuilds confidence. In his words, in 2022 there was a “combination of bad actors bypassing lines in jurisdictions without clear regulations. If 2022 was the year of rule-breaking and failure, I believe 2023 is the year when companies instead follow the rules and reap the rewards.”

Source: Pantera Capital

Pantera Capital, which has over $4 billion in assets under management up from over $5.6 billion at the start of 2022 and whose portfolio includes 1Inch, Coinbase, BitG, Bitstamp, Brave, Ripple and Polkadot, said that it believes centralized exchanges will recover “on a jurisdiction-by-jurisdiction level.”

The letter also states that decentralized finance “should not be overlooked” as centralized financial platforms restore confidence.

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